A Growing Trend in International Arbitration
In the challenging economic conditions and rising interest rates predicted for 2023, it is expected that more debtors may resist or refuse payment. In such a scenario, having an enforcement team becomes even more crucial for judgment or award creditors seeking to collect what is owed to them. The expertise and financial capabilities of an enforcement team, such as MHN, can greatly assist in pursuing enforcement campaigns and securing payment.
Incorporating an enforcement team from the outset of a case can help in selecting the right defendant, claims, and forum to increase the likelihood of translating a favourable judgment into actual monetary recovery. Even during the progress of a case, enforcement planning can guide strategic decisions such as discovery requests, amendments to claims or pleadings, or the implementation of interim/conservatory measures. This approach ensures that a judgment in the plaintiff’s favour does not end up being a meaningless piece of paper.
Furthermore, if a judgment or award is obtained but the debtor refuses to pay, specialized enforcement funding can help mitigate the financial burden on the plaintiff while pursuing necessary enforcement proceedings. This funding can be particularly useful if the enforcement process is protracted and requires additional resources. Additionally, if the debtor seeks protection in bankruptcy, insolvency funding can assist claimants in navigating those proceedings.
Ultimately, it is important for both clients and funders to prioritize the collectability of a claim when initiating and funding a case. Having a funder with the financial capacity and expertise to pursue a potentially uncooperative judgment debtor can provide clients with a clearer path toward a successful outcome and peace of mind.
Please note that the information provided is based on the content you shared and does not constitute legal advice. It is always advisable to consult with a qualified attorney for specific legal concerns.